THE ROLE OF EDUCATION IN POVERTY ERADICATION AND ECONOMIC DEVELOPMENT

The essence of development lies with human-capital accumulation, in particular education. As evidenced by the East Asian experience, education can lead and promote sustainable economic and social development of a country, and is essentially one of the few factors which development should really care about. Poverty, in the long term, is to be eradicated through education and economic development. The paper posits a possible Say's law for education, whereby the creation of a critical pool of better educated skilled workers generates its own demand by attracting investments in the services and manufacturing sectors of the economy that uses this pool. In an age of global value and production chains, and global scale of direct investment and movements of financial capital, this effect of demand self-generation of the supply of educated workers can be especially pronounced. Countries that prioritize education in their national economic and social development plans are especially likely to benefit from this effect of investing in education.CPCI-S(ISTP)CPCI-SSH(ISSHP)4864-487